Professional Documents
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India Case Study UAE Report 2018
India Case Study UAE Report 2018
India Case Study UAE Report 2018
Aadhaar – India
Aadhaar – meaning “foundation” in several Indian languages – is the largest biometric
identity programme in the world. Since its launch in 2009, Aadhaar has enrolled
nearly 1.2 billion Indian citizens and residents (about 15% of the global population),
including over 99% of all Indian adults. Each Aadhaar recipient receives a unique
12-digit ID number, and submits their photo and their biometric data in the form
of fingerprints and iris scans. Originally designed to help mitigate fraud, waste and
abuse in social benefit programmes by ensuring benefits went to the right person, the
initiative has grown to encompass many parts of everyday life in India, such as bank
transactions and activating a mobile phone. Use of Aadhaar is mandatory for a growing
number of these programmes. As the programme has grown, so has the controversy
surrounding it, including a landmark November
2017 Indian Supreme Court ruling that for the first
time recognised privacy as a fundamental human
right, which may have implications for the future of
Aadhaar. As far as digital identities are concerned,
all eyes are on India.
Trend 1: Identity . 27
Trend 1: Identity
l Select the shop where they prefer to receive their Government officials believe that the full potential of
benefits. A central database manages the benefits and Aadhaar is not yet apparent,46 and that the next wave
permits authentication of a beneficiary at any location, of innovation will come from the private sector with
thereby promoting choice and mobility. businesses using Aadhaar as a platform. The system
includes an open application programming interface
In addition to social services such as PDS, Aadhaar also (API), which allows the programme to serve as a platform
now encompasses over 3 500 government and non- for private sector companies to build services using
government services in India, ranging from opening bank Aadhaar identity management as a foundation, which has
accounts to making digital payments, enrolling in school, the potential to enable a whole ecosystem of apps. For
activating a mobile phone, receiving pension payments, example, Google’s Tez app allows people to send instant
filing taxes, voting and making e-signatures.43,44 The digital payments to friends, relatives and businesses. Tez
government has also launched DigiLocker,45 a platform for gained 7.5 million users in its first five weeks, drastically
issuing, sharing and verifying documents and certificates, increasing the number of Aadhaar transactions (see
in an effort to move towards a paperless society. Figure 15) (Pahwa, 2017). Given the open nature of
its interface, the architect of Aadhaar believes that in
the future people will use Aadhaar in ways that are
unimaginable today (Mirchandani, 2017).
43. See https://economictimes.indiatimes.com/tdmc/your-money/7-benefits-of-
aadhaar-card/tomorrowmakersshow/58412087.cms. 46. Interviews with J. Sathyanarayana, Indian Administrative Service (IAS), Chairman
of the Unique Identification Authority of India (UIDAI) and Advisor to the Chief
44. See http://etaal.gov.in/etaal/auth/Login.aspx. Minister of Andhra Pradesh, and Ajay Sawhney, IAS, Secretary to the Government of
45. See https://digilocker.gov.in. India for the Ministry of Electronics and Information Technology, 12 December 2017.
Trend 1: Identity . 29
Trend 1: Identity
2.0 1.93
1.68
1.5
Google Tez launch
1.09
1.0
0.71 0.75
0.70
0.56
0.5 0.43 0.41
0.23
0.0
02 Aug
04 Aug
06 Aug
08 Aug
10 Aug
12 Aug
14 Aug
16 Aug
20 Aug
22 Aug
24 Aug
26 Aug
28 Aug
30 Aug
01 Sep
03 Sep
05 Sep
07 Sep
09 Sep
11 Sep
13 Sep
15 Sep
17 Sep
19 Sep
21 Sep
23 Sep
25 Sep
27 Sep
29 Sep
18Aug
01 Jul
03 Jul
05 Jul
07 Jul
09 Jul
11 Jul
13 Jul
15 Jul
17 Jul
19 Jul
21 Jul
23 Jul
25 Jul
27 Jul
29 Jul
31 Jul
Source: National Payments Corporation of India (NPCI) via Reserve Bank of India (RBI); Pahwa (2017).
Undoubtedly, Aadhaar has been as controversial as it has the obtained information (Khaira, 2018). The source of
been innovative. As more services become integrated the stolen information was one of tens of thousands of
through Aadhaar, it becomes possible to piece together private Aadhaar registration providers licensed to process
data to create a detailed profile of an individual. Over new Aadhaar registrations, who thus had access to the
time, such profiles could even be used to predict future Aadhaar database (The Economist, 2018). The government
behaviours in ways impossible with traditional methods responded by giving users the ability to generate and
of identity. Privacy advocates argue that this can limit use virtual IDs instead of their Aadhaar number. This extra
social mobility, as people could be trapped by their class, layer of privacy can help mask the identities of users even
past actions or any associated stigma. Some also argue if their data is compromised (Singhl, 2018). They also
this could constitute a step towards a surveillance state, restricted the number of Aadhaar registration providers
or misuse by the private sector, as businesses continue with access to the Aadhaar database (The Economist, 2018).
to enable Aadhaar authentication on their services However, it is too early to determine the extent to which
(Kolachalam, 2017). Some also raise security concerns these actions will address security concerns.
about the potential for privacy leaks or hacks of the
Aadhaar database, which could potentially result in In interviews with the OECD, senior officials in the Indian
fraudulent use of an individual’s identity. This concern is government countered privacy and security concerns,
not without merit, as sensitive Aadhaar data have already stating that Aadhaar data operations are founded on three
been breached on several occasions. In July 2017, the core principles:
names, addresses, Aadhaar numbers and bank account
details of 1.4 million pensioners were accidentally leaked 1. Minimal data: the government collects only the data
by a state Social Security office (Sethi, Bansal and Roy, needed to prove identity. Other information, such
2017). Most recently, Indian newspaper The Tribune as race, religion, education and profession, are not
reported that they were able to purchase access to collected.
Aadhaar details for every registered Aadhaar number
– including names, addresses, postal codes, phone 2. Optimal ignorance: although the Aadhaar database
numbers and email addresses (but not biometrics) – authenticates individuals, no data are sent to the
from anonymous sellers on WhatsApp. The transaction government regarding the usage of the Aadhaar
took 10 minutes and cost EUR 7. For an additional EUR account. This limits the ability of the government to
4, the newspaper was able to obtain software that accumulate data on an individual’s habits. In addition,
would allow them to print their own Aadhaar cards with no information from the Aadhaar database is shared
Trend 1: Identity . 31
Trend 1: Identity
Connection of services to Aadhaar is completely changing The function and functionality of Aadhaar has had a
sectors across India. Over USD 12 billion in financial perceptible influence on citizens’ trust in their government
transactions have taken place (Mirchandani, 2017), and and each other, according to Aadhaar government officials.
over a billion bank accounts and mobile phones have Receiving their payments and benefits on time and knowing
been linked to Aadhaar.53 that the government is protecting them against corruption
and diversion helps to increase citizens’ trust in government
Aadhaar has also simplified and made more efficient many (Mirchandani, 2017). It increases trust among communities,
processes, resulting in better services for citizens and as beneficiaries no longer fear that others may take what is
residents and significant cost-savings for the government. rightfully theirs. It also increases trust among servicers and
By mitigating fraud and abuse, the initiative has saved the businesses in clients and users, as their visibility means they
government an estimated USD 10 billion over the last 2.5 cannot defraud them. For example, Aadhaar helps to increase
years, according to the Aadhaar CEO.54 Pilferage of food banks’ trust in clients, increasing the likelihood that they will
benefits, for example, has been drastically reduced.55 lend to them. According to the Aadhaar CEO, the Aadhaar
identity and the trust it inspires will help to unleash the full
New data also show that Aadhaar has promoted financial potential of each Indian,57 although critics may not agree.
inclusiveness and gender equity. The Centre for Global
Development conducted a survey of Aadhaar users in the The results and impact of Aadhaar are poised to expand
state of Rajasthan to learn more about their experience beyond the borders of India. Despite the ongoing
(Gelb et al., 2017).56 It found that nearly all households controversies, over 20 other countries are interested in
now have at least one bank account, and a significant potentially implementing similar identity programmes and the
proportion of them are held by women. Before the underlying technology, according to reports (Jayadevan, 2018).
introduction of Aadhaar, only 44% of women had bank
accounts; this proportion has now grown to 90%. It also USER PERSPECTIVE
found that women tend to do the most banking for the Feedback on Aadhaar-enabled services, such as PDS and
family. pensions, was generally positive in the Centre for Global
Development survey. Most respondents found that
Aadhaar has fundamentally changed bargaining power Aadhaar services were at least as good as the previous
from supplier to consumer, according to Nandan Nilekani, systems, with many stating they were better and only a
the original architect of Aadhaar and the cofounder of few believing they were worse. Users generally found the
the major tech company InfoSys (Mirchandani, 2017). services to be faster and more convenient, and appreciated
For PDS alone, customer wait times have fallen from that no one else could steal goods meant for them.
hours to minutes. Enhanced mobility allows customers There were some challenges, however, with 25% of users
to receive their rations at any shop they like. If a shop reporting having to authenticate three or four times before
provides bad service, keeps irregular hours or tries to scam being accepted by the system, and some saying that the
customers (e.g. overcharging or putting stones in the rice system has not worked for them at all (Gelb et al., 2017).
to manipulate weighing), customers have the ability to
vote with their feet and go instead to another of the many CHALLENGES AND LESSONS LEARNED
shops. The government tracks usage data and shuts down Aadhaar’s main challenges stem from the privacy and
underperforming shops, thus providing them with an security concerns of people and advocacy groups.
incentive for good customer service. Strong political support on the part of the Congress
and the Prime Minister, as well as the Finance Ministry,
53. Interviews with J. Sathyanarayana, Indian Administrative Service (IAS), Chairman
of the Unique Identification Authority of India (UIDAI) and Advisor to the Chief was crucial to the success of Aadhaar in terms of
Minister of Andhra Pradesh, and Ajay Sawhney, IAS, Secretary to the Government of
India for the Ministry of Electronics and Information Technology, 12 December 2017
programme implementation and subsequent interactions.
54. Interview with Ajay Bhushan Pandey, CEO of the Unique Identification Authority Collaboration across many divisions and levels of
of India (UIDAI) , 11 December 2017. government has also been critical, according to the
55. Interview with Guru Prasad, National Informatics Centre, India, 12 December
2017.
original Aadhaar architect (Mirchandani, 2017).
56. The survey interviewed 633 households from both urban and rural areas, with a 57. Interview with Ajay Bhushan Pandey, CEO of the Unique Identification Authority
mix of incomes and land-owning statuses. Sixty-three percent of the respondents of India (UIDAI), 11 December 2017.
were women.